-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SFmJG7xsyoh2nglCzH5bOAm4CFV2pblDegcQ9g7butb7SgnYJ8nqyt5z9kXTJxeU GmWbvohqPkBuVCQWComhNw== 0001012709-98-000067.txt : 19980302 0001012709-98-000067.hdr.sgml : 19980302 ACCESSION NUMBER: 0001012709-98-000067 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980227 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: JWB AGGRESSIVE GROWTH FUND CENTRAL INDEX KEY: 0001003296 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-09132 FILM NUMBER: 98552727 BUSINESS ADDRESS: STREET 1: CENTURY SQ BLDG - 1188 BISHOP ST STREET 2: STE 1712 CITY: HONOLULU STATE: HI ZIP: 96813 BUSINESS PHONE: 8085240386 MAIL ADDRESS: STREET 1: CENTURY SQUARE BULDING STREET 2: 1188 BISHOP ST STE 1712 CITY: HONOLULU STATE: HI ZIP: 96813 N-30D 1 JWB AGGRESSIVE GROWTH FUND - ANNUAL REPORT 1997 JWB AGGRESSIVE GROWTH FUND Shareholders Report Dear Shareholders, The year ending December 31, 1997, proved to be a very successful year for the Fund, with the Fund earning an annual total return of 39.41%. We believe using the same diligent fundamental analysis to purchase only the most well managed companies in the market, which show strong future growth patterns relative to the companies current price, will hopefully allow us to repeat 1997 results (past performance is no guarantee of future performance). In 1998, we will be increasing our efforts to market the Fund in light of our great return. We will be marketing through registered investment advisors and other sources to increase assets under management. This year's economy appears to be comparable to last year's economy in several characteristics. Individual companies continue posting strong returns, while unemployment remains at its lows. Inflation has not shown strong signs of increasing in the near future, which means interest rates will not have to be raised to constrict the economy. The American economy's pace should not slow down significantly, due to Asian economic problems (at least for the first 3 quarters of the year). We expect earnings to stay strong and for companies who manage their debt and have no more than 10% of their business dealings in Asia to lead the market, and thus pull the markets in an upward swing (while the weekly markets exhibit schizophrenic volatility). This all means - we should be fine for the first three quarters. We would like to give thanks to the shareholders for their commitment and belief in the Fund and hope you will benefit from our hard work and diligence in the future. Sincerely, /s/ John W. Bagwell - ------------------------------ John W. Bagwell, CEO & Trustee JWB Aggressive Growth Fund February 26, 1998 JWB Aggressive Growth Fund vs. Nasdaq Composite & S&P 500 Index The following data replaces a graph that depicts the growth of a hypothetical $10,000 investment. JWB Aggressive S & P 500 Index Nasdaq Composite Growth Fund --------------- ---------------- ----------- 12/31/96 $10,000.00 $10,000.00 $10,000.00 1/31/97 $10,613.00 $10,688.00 $10,583.00 2/28/97 $10,676.00 $10,139.00 $10,074.00 3/31/97 $10,221.00 $9,463.00 $9,460.00 4/30/97 $10,818.00 $9,766.00 $9,311.00 5/31/97 $11,452.00 $10,847.00 $10,360.00 6/30/97 $11,949.00 $11,170.00 $11,239.00 7/31/97 $12,883.00 $12,345.00 $12,299.00 8/31/97 $12,143.00 $12,295.00 $12,818.00 9/30/97 $12,788.00 $13,057.00 $14,756.00 10/31/97 $12,347.00 $12,344.00 $14,153.00 11/30/97 $12,898.00 $12,397.00 $14,163.00 12/31/97 $13,234.00 $12,164.00 $13,941.00 Total Return* Year Ended 12/31/97 ------------------- JWB Aggressive Growth Fund 39.41% NASDAQ Composite Index 36.05%** S&P 500 Index 33.36% * Assumes reinvestment of all dividends and capital gains. ** Simple Price Appreciation. Dividends and capital gains not reinvested in index. JWB AGGRESSIVE GROWTH FUND Schedule of Investments December 31, 1997 COMMON STOCKS Shares Value ------ -------- BASIC INDUSTRIES (7.4%) Albermarle Corp. 975 $ 23,278 Safety Components Intl, Inc.* 372 4,464 -------- 27,742 -------- TRANSPORTATION (2.2%) CSX Corp. 150 8,100 -------- CONSUMER DURABLES (5.6%) Arctic Cat Inc. 1,700 16,469 Penn Engineering & Mfg. Corp. 200 4,800 -------- 21,269 -------- APPAREL & ACCESSORY (9.5%) Gymboree Corp. * 428 11,717 Just For Feet, Inc. * 150 1,969 Sears Roebuck & Co.* 200 9,050 Saks Holdings Inc.* 200 4,138 Tommy Hilfiger Corp.* 250 8,781 -------- 35,655 -------- UTILITIES (1.6%) Allen Telecom Inc.* 275 5,070 Wireless Telecom Group Inc. 130 804 -------- 5,874 -------- FINANCIAL (10.0%) City National Corp. 775 28,627 Peoples Bancshares Inc.* 100 2,275 TCF Financial Corp.* 100 3,394 Sierrawest Bancorp * 100 3,375 -------- 37,671 -------- The accompanying notes are an integral part of these financial statements. JWB AGGRESSIVE GROWTH FUND Schedule of Investments (Continued) December 31, 1997 COMMON STOCKS (CONTINUED) Shares Value ------ -------- CAPITAL GOODS - CONSTRUCTION (3.6%) Boeing Co.* 206 $ 10,081 Ciprico Inc.* 100 1,175 Sport-Haley Inc.* 220 2,240 -------- 13,676 -------- TECHNOLOGY & SCIENCE (3.5%) Scientific Games Hldgs Corp. * 550 11,138 Thermotrex Corp.* 100 2,213 -------- 13,351 -------- Total Common Stocks (43.4%) (Cost $139,918) 163,338 Cash (55.5%) 208,574 Other assets - Net (1.1%) 4,230 -------- NET ASSETS (100%) $376,142 ======== * Non - Income Producing Security The accompanying notes are an integral part of these financial statements. JWB AGGRESSIVE GROWTH FUND Statement of Assets and Liabilities December 31, 1997 ASSETS Investment in Securities, at current value (cost $139,917) $ 163,336 Cash 208,575 Receivables: Dividends 95 Interest 956 Due from Advisor (Note 2) 3,783 Deferred organization costs (Note 1) 19,523 --------- Total assets 396,268 --------- LIABILITIES Accrued expenses 603 Due to advisor for deferred organization costs (Note 1) 19,523 --------- Total liabilities 20,126 --------- NET ASSETS $ 376,142 ========= Net assets consist of: Paid-in capital $ 353,095 Accumulated net realized gain from investments 34 Net unrealized appreciation on investments 23,419 Accumulated net investment loss (406) --------- NET ASSETS (FOR 39,771 SHARES OUTSTANDING) $ 376,142 ========= NET ASSET VALUE PER SHARE $ 9.46 ========= The accompanying notes are an integral part of these financial statements. JWB AGGRESSIVE GROWTH FUND Statement of Operations Year ended December 31, 1997 INVESTMENT INCOME Dividend income $ 1,645 Interest income 3,281 --------- Total income 4,926 --------- EXPENSES Investment management fees (Note 2) 3,906 Administrative service fee (Note 2) 3,515 Accounting service fees 21,966 Audit fees 4,800 Custodian fees 3,624 Registration fees 250 Insurance 1,500 --------- Total expenses before reimbursement 39,561 Expense reimbursement by advisor (Note 2) (32,320) --------- Net expenses 7,241 --------- NET INVESTMENT LOSS (2,315) --------- NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS: Net realized gain on investments 125,060 Net change in unrealized appreciation of investments 6,890 --------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 131,950 --------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 129,635 ========= The accompanying notes are an integral part of these financial statements. JWB AGGRESSIVE GROWTH FUND Statement of Changes in Net Assets December 31, 1997
For the period March 28, 1996 (commencement For year ended of operations) December 31, to December 31, 1997 1996 --------- --------- Increase (decrease) in net assets from operations: Net investment loss $ ( 2,315) (406) Net realized gain (loss) from investments 125,060 (16,880) Change in unrealized appreciation of investments 6,890 16,528 --------- --------- Net increase (decrease) in net assets resulting from operations 129,635 (758) --------- --------- Distributions to shareholders: Distributions from net realized gain on investments (105,831) -- --------- --------- Total distributions to shareholders (105,831) -- --------- --------- Capital share transactions: * Proceeds from shares sold 11,000 462,011 Proceeds from shares issued on reinvestment of distributions from capital gains 105,831 -- Shares redeemed (207,426) (18,320) --------- --------- Net decrease from capital share transactions (90,595) 443,691 --------- --------- Total increase (decrease) in net assets (66,791) 442,933 Net assets at beginning of year 442,933 -- --------- --------- Net assets at end of year $ 376,142 $ 442,933 ========= ========= *Shares sold 860 48,836 Shares issued in reinvestment of distribution 11,199 -- --------- --------- 12,059 48,836 Shares redeemed (19,231) (1,893) --------- --------- Net increase (decrease) (7,172) 46,943 ========= =========
The accompanying notes are an integral part of these financial statements. JWB AGGRESSIVE GROWTH FUND Financial Highlights (Selected data for a share of capital stock outstanding through each period)
For the period March 28, 1996 (commencement For year ended of operations) December 31, to December 31, 1997 1996 --------- --------- Net asset value, beginning of year $ 9.44 $ 10.00 --------- --------- Income from investment operations: Net investment income (0.06) (0.01) Net realized and unrealized gain on investments 3.78 (0.55) --------- --------- Total from investment operations 3.72 (0.56) --------- --------- Less Distributions to shareholders: Net realized gain on investments sold (3.70) -- --------- --------- Total distributions (3.70) -- --------- --------- Net asset value, end of year $ 9.46 $ 9.44 ========= ========= Total investment return 39.41% (0.06%) Ratios/Supplemental Data: Net assets, end of period (000's) $ 376 $ 443 Ratio of expenses to average net assets 1.86% 1.95% Ratio of net investment income to average net assets (0.59%) (0.23%) Portfolio turnover rate 44.34% 181.79% Average commission rate paid $ .0345 $ .0426
The accompanying notes are an integral part of these financial statements. JWB AGGRESSIVE GROWTH FUND Notes To Financial Statements December 31, 1997 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization: JWB Aggressive Growth Fund (the "Fund") is a, diversified open-end management investment company that consists of one portfolio. The Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940. The Fund is authorized to issue an unlimited number of shares. The policies described below are followed consistently by the Fund in the preparation of its financial statements in conformity with generally accepted accounting principles for regulated investment companies. The following is a summary of significant accounting policies followed by the Fund. Security Valuation: Securities are valued at the last reported sales price, in the case of securities where there is no reported last sale, the closing bid price. Securities for which market quotations are not readily available are valued at their fair values as determined in good faith by or under the supervision of the Fund's Board of Trustees in accordance with methods which have been authorized by the Board. Short term debt obligations with maturities of 60 days or less are valued at amortized cost which approximates market value. Securities Transactions and Investment Income: Security transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is determined on the accrual basis. Discount on fixed income securities is amortized. Dividends and Distributions to Shareholders: The Fund records all dividends and distributions payable to shareholders on the ex-dividend date. Federal Income Taxes: It is the Fund's intention to qualify as a regulated investment company and distribute all of its taxable income. Accordingly, no provision for Federal income taxes is required in the financial statements. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. JWB AGGRESSIVE GROWTH FUND Notes To Financial Statements (Continued) December 31, 1997 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Other: The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from generally accepted accounting principals. These differences relate primarily to foreign denominated investments, market discount, defaulted bonds, partnerships, non-taxable dividends and losses deferred due to wash sales. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund. Deferred Organization Expenses: JWB Investment Advisory & Research (the "Advisor") has paid the deferred organization expenses of the Fund. The deferred organization expenses will be amortized over a period not exceeding five years once the Fund has the ability to amortize the expenses and not exceed the voluntary expense limitation (see Note 2). The Advisor will be repaid at the rate in which the deferred organization expenses are amortized. 2. MANAGEMENT FEE AND TRANSACTIONS WITH AFFILIATES Investment Management Fee: Under the terms of the investment management agreement, the Advisor has agreed to provide the Fund investment management services and be responsible for the day to day operations of the Fund. The Advisor will receive a fee, for the performance of its services at an annual rate of 1% of average daily net assets. The fee will be accrued daily and paid monthly. An investment management fee of $3,906 was accrued but none paid for the period December 31, 1997. The Advisor had agreed to limit the Fund's expenses to 2.35% of the Fund's average daily net assets until July 6, 1997. The actual expense ratio for the year ended December 31, 1997 was 1.85%. The Advisor reimbursed the Fund and waived fees and expenses totalling $32,320 for the year ended December 31, 1997. Administration Fee: The Fund has an administration agreement with JWB Management Corporation (the "Administrator"), an affiliate of the Advisor, to provide certain administrative and shareholder services, subject to the supervision and direction of the Board of Trustees of the Fund. The Administrator provides or contracts for a variety of services, including monitoring the financial, accounting and administrative transactions of the Fund, preparation of materials for meetings of the Board of Trustees, coordinating the preparation of JWB AGGRESSIVE GROWTH FUND Notes To Financial Statements (Continued) December 31, 1997 2. MANAGEMENT FEE AND TRANSACTIONS WITH AFFILIATES (Continued) the semi-annual and annual financial statements, preparation of tax returns and monitoring compliance procedures for the Fund. In addition, the Administrator pays for certain expenses borne by the Fund including the charges and expenses of the transfer agent, legal expenses, the costs incurred in the preparation and mailing of the Fund's prospectus and sales and promotional material, and other miscellaneous expense not borne by the Fund. For these services, the Fund pays the Administrator a fee, which is calculated daily and paid monthly, equal to an annual rate of .90% of average daily net assets. An administrative fee of $3,515 was accrued but none paid for the period ended December 31, 1997. Certain officers and directors of the Fund are officers and directors of the Manager. 3. INVESTMENT TRANSACTIONS Purchases and sales of investment securities (excluding short-term securities) for the year ended December 31, 1997 were $136,015 and $529,278, respectively. At December 31, 1997 net unrealized appreciation for federal income tax purposes aggregated $23,419 of which $27,808 related to unrealized appreciation and $4,389 related to unrealized depreciation. The cost of investments at December 31, 1997 for federal income tax purposes was $139,918. INDEPENDENT AUDITOR'S REPORT To the Shareholders and Board of Trustees of the JWB Aggressive Growth Fund We have audited the accompanying statement of assets and liabilities of JWB Aggressive Growth Fund including, the schedule of investments, as of December 31, 1997, and the related statements of operations for the year then ended, changes in net assets, and the financial highlights for the period March 28, 1996 (commencement of operations) to December 31, 1996 and for the year ended December 31, 1997. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 1997, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of JWB Aggressive Growth Fund as of December 31, 1997, the results of its operations for the year then ended, the changes in net assets, and the financial highlights for the period March 28, 1996 (commencement of operations) to December 31, 1996 and for the year ended December 31, 1997, in conformity with generally accepted accounting principles. Abington, Pennsylvania February 18, 1998 Certified Public Accountants -----END PRIVACY-ENHANCED MESSAGE-----